) second quarter 2014 earnings came in at $3.42 per share, beating
the Zacks Consensus Estimate of $3.37 per share and increasing
70.1% from the year-ago earnings.
Revenues for the reported quarter came in at $2.67 billion, up
34% from the year-ago period, beating the Zacks Consensus Estimate
of $2.56 billion.
Results were boosted by the inclusion of products from the
Warner Chilcott acquisition.
Actavis has two revenue producing segments -- Actavis Pharma and
While Actavis Pharma includes all branded, branded generic,
generic and over-the-counter products, Anda Distribution includes
revenue from the distribution of third-party products.
The Actavis Pharma segment posted sales of $2.24 billion, up
30.7%. Results benefited from the Warner Chilcott acquisition, new
product launches, and higher international revenues.
North American Brands revenue soared 305.5% to $587.2 million,
driven by the Warner Chilcott acquisition and increased sales of
key legacy products.
While Women's Health revenues were $230.8 million, Urology and
Gastroenterology revenues increased 284.4% to $214.5 million.
Dermatology and Established Brands revenue increased 109.6% to
North American Generics revenues increased 8.6% to $1.03 billion
driven by the strong performance of the generic versions of
Cymbalta and Lidoderm. Generic Concerta sales, however, were
impacted by competition.
International revenues increased marginally to $621.6
Net revenues from the Anda Distribution segment increased 54.8%
during the quarter to $427 million reflecting higher volume and new
Provides Outlook for Second Half 2014 and 2015
Actavis, which recently acquired Forest Laboratories, provided
its outlook for the second half of the year. The company expects to
earn $6.25 - $6.50 per share on total net revenues of about $7
Full year earnings are expected in the range of $13.02 and
$13.32 per share - this is below the current Zacks Consensus
Estimate of $13.67 per share.
The company also provided its initial outlook for 2015. Actavis
expects to earn $15.60 and $16.80 per share on net revenues of
about $15 billion. The Zacks Consensus Estimate for earnings and
revenue are $16.72 per share and $14.2 billion, respectively.
Actavis expects to spend about $1.2 billion on R&D in
Actavis' second quarter results were once again strong with the
company beating on the top- and bottom-line. Meanwhile, the
company, which recently acquired Forest, provided its outlook for
the second half of 2014 and 2015.
The Forest acquisition is in line with the company's strategy of
building its branded product portfolio. With a fewer number of
blockbuster products slated to lose patent protection in the coming
years, quite a few generic companies have been focusing on
strengthening their branded product offerings.
Actavis is a Zacks Rank #3 (Hold) stock. Some better-ranked
stocks in the health care sector include Mallinckrodt plc (
), Actelion Ltd. (
) and Alexion Pharmaceuticals (
). While Mallinckrodt and Actelion are Zacks Rank #1 (Strong Buy)
stocks, Alexion is a Zacks Rank #2 (Buy) stock.
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